First, a quick recap.
- 43000 +/- 300 was predicted as possible index high in a number of previous posts and looking at the chart above, index made a highest high of 42647 (rounded off) on closing basis - which is the lower boundary of our specified performance envelope. Its a bit disappointing that index took a harsh reversal right away from the lower boundary without making any significant effort to break through it. However, it is somewhat explainable due to threat factor caused by CKO enrollment deadline of 30/Sep/2020. The deadline has now been extended to 31/Dec/2020.
- On the down side, 39500 was initial support failing which the bottom could reach 37500 - 38000. KSE100 made a lowly low of 39127 on closing basis. Subsequent updates were missed on the blog due to health issues but short notes were sent on our Telegram group.
Looking forward, we see the repeat of history with 40700 +/- 200 posing as the first resistance and 41900 +/- 200 being the second. Closing above 40700 +/- 200 has been achieved so its a pat on the back already! However, if index dips again from a lower high then it will be a strong alarm of bear invasion once again. On the upside, it must sustain a close above its pivot with improving capitalization to support a bullish break. Index closed at 40,798 - gaining 727 points or 1.8% on WoW basis.
Market capitalization shows a dismal figure with average weekly capitalization in continuous down fall across the three week span. This is nothing short of panic selling - much of it instigated by the fear of CKO deadline.
I have not fully recovered from health issues, so blog updates will remain boring and minimal until then. I will just try to put the bare information necessary for the stay alive signal!
Post a Comment